Vietnam’s IT and high-tech tax incentives: from “location” to “technology and capital”
Under the Law on Digital Technology Industry (effective January 2026), software product manufacturing, AI development, semiconductor chips and AI data centers became special incentive sectors. New projects may qualify for a 10% corporate income tax rate for 15 years, up to 4 years of tax exemption and then up to 9 years of 50% reduction (the standard rate is 20%).
In 2026, Vietnam’s investment incentives shifted from being based mainly on location to being based on industry, technology and capital invested — and IT and high-tech became the top-priority sectors.
Special incentive sectors
Under the Law on Digital Technology Industry (effective January 2026), the following became special incentive sectors:
- Software product manufacturing (software development and productization)
- AI development (artificial intelligence and machine learning)
- Semiconductor chips (design, manufacturing and packaging)
- AI data centers (cloud and data infrastructure)
New projects may qualify for a 10% corporate income tax rate for 15 years, up to 4 years of tax exemption, followed by a 50% reduction for up to 9 years (the standard rate is 20%).
Software and large-scale projects
For software, the rate is 10% (15 years) or 17% (10 years) depending on the category. Large-scale projects — for example, with total investment of VND 3 trillion or more, of which at least VND 1 trillion is disbursed within 3 years — may also be eligible for special incentives and investment support.
Key points
- Incentives are not applied automatically: you need technology certification and proof of your business activities.
- Designing your business objectives, product classification and funding plan from the Investment Registration Certificate (IRC) application stage is what makes the difference.
- Groups with consolidated revenue of EUR 750 million or more are also affected by the global minimum tax, so estimate the real value of the incentives in advance.
Which incentives apply to your company?
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